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Payment for Ecosystem Services from Forests

Author

Listed:
  • Jennifer Alix-Garcia

    (Department of Agricultural & Applied Economics, University of Wisconsin, Madison, Wisconsin 53706)

  • Hendrik Wolff

    (Department of Economics, University of Washington, Seattle, Washington 98195)

Abstract

Every year from 2000 to 2010, our planet lost native forests roughly the size of Costa Rica (FAO 2010). This rapid deforestation has dramatically changed the chemical composition of the world’s atmosphere, the level of biodiversity, and the presence of vegetation key to maintaining watershed function and preventing landslides. There has been a boom in the design of local and international policy instruments to prevent further deforestation and to encourage forest growth. This article reviews the theory and evidence surrounding forest-related payment for ecosystem services (PES) schemes intended to slow and reverse deforestation. We cover the most recent work touching on a range of issues related to PES programs, including research on targeting, contract design, environmental effectiveness, challenges to program implementation, spillovers, and distributional considerations of conditional cash transfers. We also highlight areas of potential future research.

Suggested Citation

  • Jennifer Alix-Garcia & Hendrik Wolff, 2014. "Payment for Ecosystem Services from Forests," Annual Review of Resource Economics, Annual Reviews, vol. 6(1), pages 361-380, October.
    • Handle: RePEc:anr:reseco:v:6:y:2014:p:361-380
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    File URL: http://www.annualreviews.org/doi/abs/10.1146/annurev-resource-100913-012524
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    More about this item

    Keywords

    environmental policy; deforestation; afforestation; reforestation; climate change; conditional cash transfers; PES;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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